A new report from Sprout Social (NASDAQ: SPT) shows that social media is taking center stage in marketing strategies for 2025, with CMOs reallocating significant portions of their budgets from traditional channels to digital platforms.

The 2025 Impact of Social Media Report, based on insights from 1,200 marketing leaders worldwide, found that 80% plan to divert funds into social, with 87% boosting paid social, and more than 80% expanding influencer and organic social budgets. Talent investment is rising too, with three-quarters of leaders planning to grow their social teams.

ROI Pressure and Data Gaps

Despite rising investment, many leaders lack confidence in their teams’ ability to prove social’s business impact. Only 44% rate their social teams as “expert” at tying activity to outcomes like revenue and efficiency. Instead, most teams still rely on engagement (68%) and conversions (65%) as primary metrics, while executives increasingly expect revenue-driven ROI reporting.

“Social media is rapidly capturing a larger share of marketing budgets, driven by its unmatched ability to deliver results that other channels struggle to achieve,” said Scott Morris, CMO of Sprout Social. “As social delivers stronger ROI, enhancing data literacy will be critical so brands can harness insights for transformative impact across the organization.”

Social Search and New Talent Priorities

One of the most significant shifts is the rise of social search, fueled by Gen Z behavior. Eighty-one percent of leaders are moving budget away from traditional SEO toward social search optimization (SOSEO), with SOSEO specialists now the top role marketing leaders are hiring for. Over half of brands already have a SOSEO strategy, while 43% are actively experimenting.

Platform Impact and Content Strategies

• Top Platforms: Facebook (70%), YouTube (68%), and TikTok (64%) dominate overall impact. For B2B, LinkedIn leads (70%), while B2C brands still lean on Facebook (67%).

• Content Volume: A disconnect persists between leaders and managers. While 69% of CMOs want more posting, only 50% of managers agree. Data shows engagement actually increased 20% in 2024 despite reduced publishing volumes.

• Cross-Functional Value: Social insights are underutilized outside of marketing. Less than half of teams integrate data into CRM systems, despite leadership demand for customer care, business development, and CX applications.

As Shirley Tat, Global Head of Social at Canva, noted, brands are now embedding social into product and business strategies: “We launched all of our new products this year based on user feedback. We’ve come a long way in thinking about how social media shifts the business forward.”

The report makes clear: in 2025, social media isn’t just a channel—it’s the engine driving customer acquisition, loyalty, and revenue growth.

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